If Obamacare Is ‘Socialism,’ Why Are Health Care Stock Prices Going Through The Roof?

If Obamacare Is 'Socialism,' Why Are Health Care Stocks Prices Going Through The Roof?

Health care stocks are skyrocketing since passage of the Affordable Care Act, but some Republicans continue to call it “socialism.”

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Somebody had better tell the folks on Wall Street that Obamacare is “socialism,” or “socialized medicine.” Investors apparently have not gotten that word, as health care stocks have been outperforming the broader market ever since the Affordable Care Act became law.

According to a September 30 article on CNN Money,

Health care stocks have been hot since the passage of the Affordable Care Act in 2010, outperforming the broader market by a healthy margin.

Health Care Stocks Have Been On The Rise Since 2010

A look at the stock prices of some of the major players in the health care sector confirms that indeed, investors are bullish on insurance and hospital stocks in the age of Obamacare. Tenet Healthcare (Symbol: THC), which has hospitals in 14 states, has seen its stock price jump over 40 percent since the beginning of 2013, and has doubled in price since President Obama signed the Affordable Care Act into law in March 2010. HCA Holdings (HCA), owners of 163 hospitals in the U.S., was trading at $31.12 following its initial public offering in March of 2011. HCA stock is now trading at over $46 a share.

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For profit insurance companies that offer health care coverage are seeing a similar rise in their stock prices. Aetna (AET) has gone from a share price of  $34.46 on March 19, 2010 to a recent close of over $66 a share. Stock in United Health Group (UNH), parent company of United Health Care, has increased in price from $34.39 just before Obamacare was signed into law to a close of $72.99 on October 4, 2013.

This Is ‘Socialism?’

Remember the dire warnings offered by the Republican lunatic fringe about Obamacare?

Just think of this: Is it socialism to nationalize a company? Is it socialism to take over banks, insurance companies, car companies? Is that socialism? The socialists say it is.

Representative Steve King (R-IA)

When the government controls everybody’s health care, pays for everybody’s health care, it is the government controlling everything. They have the power then to tell everybody how much they should put in, how much they take out.

Representative Louie Gohmert (R-TX)

And of course this quote, from the queen of the tin foil hat crowd, Michele Bachmann:

I think people have no idea what’s coming down the pike. This is the crown jewel of socialism. And we only have next week to stop it….This is socialized medicine and like I said Sean this is the crown jewel of socialism….It’s unconstitutional.

It would be quite instructive to see what if any health care stocks Obamacare opponents have in their portfolios.

Wall Street ‘Socialists’ Are Laughing All The Way To The Bank

Bachmann, Gohmert, King, and others have been trying to sell the “socialism” story line ever since the Affordable Care Act was announced, but it is obvious from looking at the performance of health care stocks over the past 36 months or so that investors aren’t buying what they are selling. What they are buying are stocks in a variety of health care related fields. This seems to prove that capitalism, when regulated properly, works. Republicans, instead of being ecstatic about that fact, continue to do all they can to try to derail the law. Investors in health care stocks are happy, those who are obtaining insurance through the exchanges appear to be happy, health care and insurance companies are happy. So why are Republicans so angry?